SAO PAULO, Sept. 16 (UPI) -- Brazil's Central Bank raised interest rates 0.25 percent, marking the first hike since February 2003, Folha de Sao Paulo newspaper reported Thursday.
The hike to 16.25 percent was announced late Wednesday by the bank's Monetary Policy Committee, or Copcom, after two days of meetings.
Some Copcom members wanted to raise the rate to 16.55 percent, according to Folha, in an effort to further stem the tide of inflation, as Brazil's economy is showing positive signs of recovery after a dismal 2003.
During the 20 months President Luiz Inacio Lula da Silva has been in office, the rate was at high as 26.5 percent and was systematically lowered to 16 percent until Wednesday's hike.
Brazil's main stock index -- the Ibovespa -- rose early Thursday in reaction to the rate hike, increasing 0.75 percent to 22,510 points.
